Albany, NY skyline at sunset

logo for CAP (Championing Albany's Potential) Initiative

Championing Albany's Potential (CAP) Initiative

logo for CAP (Championing Albany's Potential) Initiative

Through the FY26 Executive Budget, Governor Hochul launched the CAP Initiative, to invest $400 million to revitalize the downtown core of Albany, in partnership with local stakeholders. 

As New York State’s capital and the country’s oldest continuously chartered city, the city has a rich history of commerce and innovation. Under Governor Hochul’s leadership, New York State has directed more than $4 billion of public support for transformative Albany area projects including replacement of the Livingston Avenue Rail Bridge, creation of the Wadsworth Laboratory, demolition of the Central Warehouse, and investments in the NY CREATES Albany NanoTech Complex – now recognized as a flagship facility of the federal National Semiconductor Technology Center. 

Yet a lack of vibrancy in the city’s core, has led to perceived public safety concerns, making it difficult to retain and attract city-center businesses and residents. Albany’s challenges are compounded by its tax landscape, where 60% of property is tax-exempt, straining municipal resources and limiting the city’s ability to invest in critical infrastructure and services.

Governor Hochul and other representatives at the budget announcement

The Downtown Albany Strategy

As part of the CAP Initiative, ESD selected MIG, a nationally recognized planning and economic development firm, to lead a collaborative planning effort to develop a long-term growth strategy for downtown Albany. The strategy will provide a framework for local leaders and stakeholders to effectively implement public safety and quality-of-life interventions, economic development strategies, infrastructure investments, community design approaches, and related public services. 

The overarching goal of this initiative is to create a vision that guides decision-making at all levels of government to effectively implement economic development strategies, infrastructure investments, community design approaches, and related public services. 

fireworks at the state plaza in Albany, NY

This investment includes $200 million to make real investments into tangible strategies and projects to revitalize Albany’s core downtown and adjacent neighborhoods within a mile of the State Capitol.

The Downtown Albany Strategy (DTAS) is an action-oriented blueprint for the next 5-10 years to unlock Downtown’s full potential. Developed with urgency from Summer 2025 to Early Winter 2026, DTAS positions Albany as a regional hub for housing, innovation, and inclusive growth.

Thousands of residents, workers, students, business owners, and community leaders informed the Strategy and delivered a clear and consistent message: Downtown Albany matters, and the community wants visible, tangible progress.

Growth Targets

The Downtown Albany Strategy sets clear, measurable targets to guide investments and track progress through 2035—turning community priorities into real, trackable outcomes:

  • Triple the Downtown’s core residential base to 3,500 by 2035
  • Add 1,500 jobs Downtown in five years; 3,000 in 10 years
  • Reach five million annual visitors, 90-minute stays, 150+ event days
  • Achieve $3 in private investment for every dollar in CAP funding
  • Put three catalytic sites under construction within three years
  • Improve positive safety ratings by 15%

DTAS Funds

The Downtown Albany Strategy will be delivered through three targeted funds designed to unlock catalytic investment and deliver measurable results:

CAP Transformative Projects Fund

The $120 million Transformative Projects Fund will support a small number of high-impact projects that can reset market confidence and attract follow-on private investment.
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CAP Housing Investment Fund

The $40 million Housing Investment Fund will accelerate housing delivery through a mix of catalytic grants and low-cost loans for repeatable, mixed-income projects.
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CAP Community Investment Fund

The $40 million Community Investment Fund will support people-centered investments in public spaces, commercial corridors, and community anchors—strengthening Downtown’s everyday experience while reinforcing long-term economic vitality.
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Visit the Downtown Albany Strategy website for more information on the planning process and to view frequently asked questions.

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Other CAP Initiative Updates

Governor Hochul's CAP Initiative continues to make investments and progress towards revitalizing Albany’s downtown core and long-term economic growth.